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SpclKen posted:Man $350,000 doesn't go far after you pay taxes and give to charity, but I always give first and foremost when I receive a windfall.  For $350k: 1. Pay off house (167k) 183,000 2. Sell house (150k) 333,000 3. Pay off car (12k) 321,000 4. Sell car (16k) 337,000 5. Buy a beater (4k) 333,000 6. Pay off 401k loan ($5k) 328,000 7. Pay of CC debt ($3k) 325,000 8. Buy two more investment properties ($80k) 245,000 9. Invest balance into Vanguard 500 Index and a Vanguard Global Equity mutual fund (245k) $0 I estimate this would increase my net monthly income by about $3k.
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Jan 9, 2015 03:16
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fruition posted:
Wow, you are pretty upset about me giving away money to people less fortunate and in need. I also don't "blindly" give to charities. I research and give money to effective organizations that help people that do not have opportunity and advantages. There is an orphanage that rescues young girls that are born in brothels in India that money changes lives. It isn't about giving to my, or any other church. If I get a sudden 350k in cash, and I give away $50K of found money how does that screw over my own family? I must say it is a great idea saving the principle and giving away proceeds (I've thought about buying a business or a rental property for just that reason) but then you go and say buying a new truck is better than giving it away to people in need... I am perfectly happy with my priorities and how I would spend a windfall with my current situation. I respect yours as well. SpclKen fucked around with this message at 03:55 on Jan 9, 2015 |
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Jan 9, 2015 03:42
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This is the worst response yet. You have a third kid on the way and you'd literally take a piss with $52,000? poo poo, my dad is bad with money but at least he'd buy a big truck or something marginally useful. I'm not religious so I don't get the whole tithing thing, but either way that's a lot of money to just blindly give to a "charity". At least put the $50k into a stock/dividend fund and "give" the profits to charity without touching the principal. That way you aren't loving over your own family to feel good about writing your church a check.
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Jesus Christ posted:No student loans, frugal living How Frugal? Invest in a strong stock that has a 6% or better annual dividend.
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Jan 9, 2015 12:54
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My Q-Face posted:How Frugal? Invest in a strong stock that has a 6% or better annual dividend. Please don't invest $350K in a single stock if it represents a substantial windfall sum to you
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Jan 9, 2015 14:46
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Pay off car - $9k ($341k) Pay off immediate family's outstanding student loan debt - $50k ($291k) Pay off parents' mortgage - $80k ($211k) Large down payment on a nice house - $100k ($111k) Add to long term investments - $100k ($11k) Buy a bunch of video games - $1.5k ($9.5k) Take a month-long international vacation - $9.5k ($0) Yep, that sounds about right
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Jan 9, 2015 15:18
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Take a nice vacation with my girlfriend, drop 25k in to an index fund, throw the rest at a house.
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Jan 9, 2015 16:05
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1. Off with debts (30k) 320k 2. New car (Focus ST? MazdaSpeed 3?) (25k) 295k 3. And to top it all off, (Vanguard?) Mutual funds 295k 4. Back to work, with a smile. All hail national labs, best QOL job I've ever had or ever heard of. I'm boring, and I don't think I'll even think to look at a house until my fiancee is done with her medical residency program, and after I either get tenure as a prof. or found a company that can grow and become stable, which is probably a good 6-8 years down the road.
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Jan 9, 2015 16:58
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Buy 12 more 80k investment properties with 20% down (252k including closing costs and light reno work) Do my standard 12 months of mortgage/property tax/insurance payments in reserve for each of the 12 (72k) Use the remainder to round my efund out to a 50k because..... I'd drop down to 80% at work for a year and then probably retire into full time land lording. 12 more properties in the 80k region is my "critical mass" of properties where my net income from rentals will exceed my salary.
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Jan 9, 2015 22:10
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SpclKen posted:Wow, you are pretty upset about me giving away money to people less fortunate and in need. I also don't "blindly" give to charities. I research and give money to effective organizations that help people that do not have opportunity and advantages. There is an orphanage that rescues young girls that are born in brothels in India that money changes lives. It isn't about giving to my, or any other church. I apologize, I immediately regretted my post after submitting it. Admittedly, I've been extraordinarily angry at religion these past few days and took it out on you.
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Jan 9, 2015 22:12
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Bloody Queef posted:Buy 12 more 80k investment properties with 20% down (252k including closing costs and light reno work) What exactly are these "80k rental properties? Outside of shitholes and wastelands where the hell can you find a property for 80k that isn't some crumbling piece of poo poo that nobody would want to live in.
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Jan 10, 2015 11:44
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0/1 bed condos in a mid-size city/college town would be my guess.
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Jan 10, 2015 12:30
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Pay off student debt, credit card debt, put 100k into shares, 100k into a more stable investment, use the rest for miscellaneous.
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Jan 10, 2015 13:40
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Jesus Christ posted:What exactly are these "80k rental properties? They're not impossible to find, just difficult. Honestly finding 12 would probably take 2 or more years, but we're in fantasy land with the 350k windfall. I already own many in the 80 range. You're not going to get an upper middle class tenant, they cater to the upper lower/lower middle class. Everybody has to live somewhere, no need to be a snob about it. All hard surfaces are generally linoleum, laminate counter tops, white rental grade appliances, etc. But not dilapidated in any way. I wouldn't rent out a house to someone in which I wouldn't live in a pinch. I also want to be safe when I or my wife are stopping by the property. These are all in a small city on the east coast. The city itself is kind of lacking, but it's in within commuting distance of a large city. Accretionist posted:0/1 bed condos in a mid-size city/college town would be my guess. There are "nicer" studio apartments in that price range, but as a landlord I steer very clear of any kinds of HOAs/Co-ops etc. In that range with the above quality finishings, I generally get 2bd/1ba rowhomes commonly at short sale. In bought one over the summer that's a 3bd/1ba that has a huge laundry room on the first floor that I'm debating splitting and adding a 1/2 ba. It all depends how much push back I get on the higher rent I'm seeking out. ($1200) I paid exactly 80 for it. It was a smashing deal,
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Jan 10, 2015 15:19
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Reduce long term debt to $0 Remaining $290,000 goes to a trust that feeds back $3,000/month, glide to retirement age. Eat, drink, be merry.
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Jan 10, 2015 15:20
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Buy a couple apartment buildings and put the rest in the stock market and some muni bonds. Jesus Christ posted:What exactly are these "80k rental properties? There's 4-plexes listed by me for $120,000. I can get a duplex for less than $100k, and some properties with 3-units for around $60k. They pull like $500/month per unit as well. Crumbling Midwest shithole = great slumlord opportunities.
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Jan 10, 2015 15:23
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Throw it in with the rest of my invested money. Strongly consider buying a house and thinking about where I would want to live because I would be about 2-5 years from a frugal living retirement.
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Jan 10, 2015 16:21
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Wow, y'all seem to REALLY hate charities. I think it's pretty cool to spend 5%-10% on doing something decent for a change, rather than blowing it on rims or blowing it on blow. If I received $350k, I would probably... Send 5% to the veteran dolphins of america fund, which will cost $17.5k Pay off my student loans, which are about $12k Buy a car, spend perhaps no more than $20k Pay off half of my pitiful brother's student loans, probably $35k Pay off half of my pitiful family's debt... maybe $50k Blow 15.5k on stupid crap Invest 200k in Wal-mart
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Jan 11, 2015 00:23
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Here's a different question: You have a literal burlap sack full of $350k in cash, it has a dollar sign on it and everything. You maybe don't want to talk about where you got it and can't just walk up to the bank and slam it down on the counter. What do you do then, BFC?
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Jan 11, 2015 00:27
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My mom actually drove across the French/Spanish border with many thousands of francs in the top lining of her car to deposit it in another bank. I forget what excuse she had but that was a pretty wtf hippie mom story. Me, I would put my drug money in a fireproof safe for the time being and then start researching trips to Switzerland. If the notes aren't traceable (bank robbery) then start depositing a few thousand a week at the bank. I'm a pretty terrible money launderer I guess. Maybe I should ask my mom.
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Jan 11, 2015 00:49
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Ill gotten gains? That's spending money. You increase your nominal savings rate and slowly spend down your, uh, "petty cash."
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Jan 11, 2015 01:04
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Accretionist posted:Ill gotten gains? That's spending money. You increase your nominal savings rate and slowly spend down your, uh, "petty cash." If I had $350,000, I'd probably just use it for down payment and costs on a house or condo (I live in Seattle, so that's all I would be able to do with it). Student loan interest is so low at the moment there's no reason to bother.
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Jan 11, 2015 01:19
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100 HOGS AGREE posted:Here's a different question: Buy a great suit and suitcase, and walk into a bank with authority. 
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Jan 11, 2015 02:28
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I wonder how much it'd cost for a casino employee to forge documents saying you won it in high-stakes poker?
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Jan 11, 2015 02:52
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I'm surprised nobody is saying "pay taxes on it"
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Jan 11, 2015 10:11
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WHAT A GOOD DOG posted:I'm surprised nobody is saying "pay taxes on it" Is it actually possible to report and pay taxes on money without explaining how you got it? Wouldn't the IRS want to see something that proves you earned it in a legitimate business or something? Otherwise, you presumably either stole it, counterfeited it, or earned it illegally. I doubt you can write "it magically appeared underneath my bed one day" on the forms.
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Jan 11, 2015 10:55
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Pay off student debt $40,000 Buy cheap house and rent it out $80,000 Invest the rest into stocks.
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Jan 11, 2015 13:23
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For those of you believing that $350k would pretty much set you up for life, please explain how this would work. Unless it involves living off the grid in a tent and making GBS threads in five gallon buckets or something like that - then don't bother.
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Jan 11, 2015 18:57
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If all I did was pay off my house and stick the rest under my mattress and live off of it, based on my current expenses it would last like 30 years. That would be pretty silly to do and doesn't account for any cost of living increases or major emergencies but if all I had to do was keep myself fed and the lights on in a paid-for house it would at least let me look for jobs a long time or only need something part-time if my current job dried up.
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Jan 11, 2015 19:09
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If it was free and clear money, I'd 1) work for two more years at my corporate job until all my RSUs vest, and use that time to continue maxing my retirement accounts 2) pay off my existing mortgage @ 90k 3) invest 200k in my taxable account while maintaining my current allocations 4) put 20k toward the STEM education non-profit I recently started with some other engineers and teachers and a few other charities I like to support 5) use 10k to start the consulting business I mentioned in my 2015 goals thread and either give a startup loan to or become a partner in another friend's plane mechanic business 6) use the remaining 20k to have a solid first retirement year of a 3 months of travel and 9 months of personal development (skill building), leisure, and enjoying restaurants before settling into a more normal routine that's actually commensurate with the income I'd realistically receive from investments and occasional odd jobs to supplement it. But if it were all unreportable money, it would be mostly just #6 spent in small bursts on the weekends
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Jan 11, 2015 19:55
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SlyFrog posted:For those of you believing that $350k would pretty much set you up for life, please explain how this would work. Unless it involves living off the grid in a tent and making GBS threads in five gallon buckets or something like that - then don't bother. Based on conventional rules of thumb, investing $350k can yield a steady inflation-adjusted income of around $14k a year. If you stick to places with relatively low cost on living (which is pretty easy when the local job market is of no concern), that could be enough to live with some standard of human dignity. That is, as long as there are no mouths to feed besides yours. And you have no interest in any hobby requiring more than minimal living space or any equipment costing more than a PS4.
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Jan 11, 2015 21:30
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SlyFrog posted:For those of you believing that $350k would pretty much set you up for life, please explain how this would work. Unless it involves living off the grid in a tent and making GBS threads in five gallon buckets or something like that - then don't bother. It seems like those who would live off it already have significant investments and the 350k would just accelerate their retirement plan by many years.
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Jan 11, 2015 23:37
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SlyFrog posted:For those of you believing that $350k would pretty much set you up for life, please explain how this would work. Unless it involves living off the grid in a tent and making GBS threads in five gallon buckets or something like that - then don't bother. I'm old. 3 years away from SS income, 6 from max SS income.
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Jan 12, 2015 03:40
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I'd invest the entire $350k, although I might accelerate my plan to buy a bicycle.
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Jan 12, 2015 03:46
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SlyFrog posted:For those of you believing that $350k would pretty much set you up for life, please explain how this would work. Unless it involves living off the grid in a tent and making GBS threads in five gallon buckets or something like that - then don't bother. 350,000 at 13% a year -15% for capital gains (if you don't wanna do any tricks) is ~37k a year. you can live off that almost anywhere in the world. I could live off half of that if 13% sounds too aggressive (it isn't). If that's dirty money then...get a boat out of the country with all the cash, buy a business in cambodia or the phillipines, and live well the rest of your life.
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Jan 12, 2015 03:52
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a posting ghost posted:350,000 at 13% a year -15% for capital gains (if you don't wanna do any tricks) is ~37k a year. you can live off that almost anywhere in the world. I could live off half of that if 13% sounds too aggressive (it isn't). It absolutely is too aggressive year over year for the long term. The year you're down and still take out 37k is really going to hurt. Keep in mind you're not looking at inflation, so you'd realistically need to make 16% to keep up with it.
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Jan 12, 2015 03:54
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Bloody Queef posted:It absolutely is too aggressive year over year for the long term. The year you're down and still take out 37k is really going to hurt. Keep in mind you're not looking at inflation, so you'd realistically need to make 16% to keep up with it. Well that'd be the year you learn to live on less then. Also can easily start dipping into the principal as time goes on. Also inflation is absolutely not 3% right now, it's 1.5% and falling. We are potentially entering deflationary territory. http://inflationdata.com/Inflation/Inflation_Rate/CurrentInflation.asp the worst thing is fucked around with this message at 04:03 on Jan 12, 2015 |
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Jan 12, 2015 04:00
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Even Madoff didn't have the balls to fake 13%+ returns
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Jan 12, 2015 04:33
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Bloody Queef posted:It absolutely is too aggressive year over year for the long term. The year you're down and still take out 37k is really going to hurt. Keep in mind you're not looking at inflation, so you'd realistically need to make 16% to keep up with it. You could make 0% per year but find a country where you can live like a king for $10k per year for 35 years. Any other investments or the like are just a bonus to see you out for the rest of your life. Live the SloMo lifestyle wishes he could without being broke or in debt.
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Jan 12, 2015 04:43
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VostokProgram posted:Is it actually possible to report and pay taxes on money without explaining how you got it? Wouldn't the IRS want to see something that proves you earned it in a legitimate business or something? Otherwise, you presumably either stole it, counterfeited it, or earned it illegally. I doubt you can write "it magically appeared underneath my bed one day" on the forms. The IRS can't care. It'd be unconstitutional to put you in a double-blind of self-incrimination or tax fraud.
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Jan 12, 2015 05:10
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Remember, what they eventually got Al Capone on was tax evasion
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Jan 12, 2015 05:17
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